Enovis Corporation reported third‑quarter 2025 results that combined solid revenue growth with a significant one‑time charge. Net sales rose 9% on a reported basis to $549 million, a 7% increase on an organic basis, compared with $505 million in Q3 2024. The company posted a net loss of $571 million, largely driven by a $548 million non‑cash goodwill impairment related to recent acquisitions. Adjusted EBITDA reached $95 million, giving a margin of 17.3%, and adjusted earnings per diluted share were $0.75, beating consensus estimates of $0.65–$0.67 by $0.08–$0.10, or roughly 12–15%.
Revenue growth was led by the Reconstructive unit, which grew 12% on a reported basis and 9% organically, driven by double‑digit expansion in extremities. The Prevention & Recovery segment added 6% reported and 4% organic, supported by steady demand in its core markets. The mix shift toward higher‑margin products helped lift overall sales.
Adjusted gross margin expanded to 60.3% from 58.9% in the prior year, a 140‑basis‑point gain attributed to pricing power and a higher proportion of high‑margin extremities products. Adjusted EBITDA margin slipped slightly to 17.3% from 17.9% in Q3 2024, but the decline was largely offset by the goodwill impairment and the company’s continued focus on cost discipline.
Enovis updated its 2025 outlook, maintaining revenue guidance of $2.24 billion to $2.27 billion but incorporating a $15 million reduction linked to the divestiture of its Dr. Comfort diabetic footcare business. Adjusted EBITDA guidance was raised to $395 million to $405 million, and diluted earnings per share were projected at $3.10 to $3.25, reflecting confidence in the core business and the expected benefits of the divestiture.
Investor sentiment was muted after the announcement, with the market focusing on the sizable goodwill impairment and the revenue impact of the Dr. Comfort divestiture. The one‑time charge and the strategic shift away from legacy businesses tempered enthusiasm despite the earnings beat.
CEO Damien McDonald highlighted the quarter as evidence of “solid execution,” noting double‑digit growth in extremities and consistent performance across Prevention & Recovery. He reiterated the company’s focus on commercial execution, innovation, operational excellence, and financial discipline as it positions Enovis for continued profitable growth.
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